People from every corner of the world is taking the benefits of peer-to-peer (P2P) payment applications. The phrase, P2P payment refers to the method of transferring money from one person to another anywhere and anytime in the world without the direct involvement of a third-party. Remember those days when people carry money in pocket to pay for the bills or used to go to the bank or ATM to transfer and withdraw the money. Using online money transferring apps, individuals can make the payment or transfer money with ease. However, a zero-cash future is not as close as some people predict. But, the increasing demand for P2P applications is showing its popularity and of course, P2P payment apps have simplified various aspects of our lives. Now, it is right to say that the mobile wallet or e-wallet is a thing on which the large majority of people rely.
According to the report published by Allied Market Research, the mobile payment was valued around $600 billion in 2016 and looking at the increasing demand, it is expected that it will be double in upcoming years.
What is a P2P Payment App?
Peer to Peer (P2P) payment is a platform where the individual can transform money directly from their linked bank account into the bank accounts of their friends and families. Apart from easy money transfer, on each transaction, the individuals get amazing offers or cash-back from the banks and service providers that is the reason why the number of people relies on it. One of the most interesting things that make P2P apps best as an individual can link a number of bank accounts in the app.
The biggest players in peer to peer sectors are the various tech giants such as Google Pay, PayPal, Square Cash, and Venmo that have not only transformed the way of payment but also make payment easier, faster, secure and cheaper for their users. Many social network and messaging apps have also started to offer P2P payment services to their users.
P2P Payment apps can be categorized into three sections that the one firm be developed as per their need.
- Standalone Services (PayPal and Venmo)
There are various companies that don’t rely on banks such companies are PayPal and Venmo. They have their own mechanism of dealing with money without any involvement of bank financial institution.
- Bank Centric (Dwolla, Zelle, and Popmoney)
There are various P2P payment apps like Popmoney, Zelle, and Dwolla that involve partner banks during the money transactions. Thus, most of the financial institutions have their own peer-to-peer apps.
- Social Media Centric (Facebook Messenger, SnapCash, Google Wallet)
To capitalize these opportunities mobile payments gateways should make a partnership with some social media companies. Social media applications integrated wallets just to ensure that their users stay in touch with their application and still can make payments. These kinds of application can directly access their bank accounts with a small payment with the help of debit /credit cards.
Features to Include in Your P2P Payment App
This is the must-have feature in any P2P payment application which notifies the users when payment has been debited or credited. Besides, it also notifies the users about the new offers and other activities of the app.
- Fingerprint Security Lock
Every payment apps have this feature to prevent it from unauthorized access or to avoid the risks associated with the apps. You should implement this feature in your payment app to provide secure access to the app associated with the bank account.
- Bank Transfer
Using this feature, a user can transfer money that they received into wallet through the apps, easily into their bank account.
- Support Through Chatbot & Email
If you are planning to build a P2P app, the first and foremost thing you need to focus on is Customer Trust. Yes! Invest in retaining customer trust. Provide excellent support via online chats and email.
- Check Account Balance
To check the account balance, this is the best feature that you can implement in your P2P payment application.
- Transaction History
Using this feature, users can check their transaction history of all time that they have sent and received. User can also check their transaction history day-wise, weekly and monthly.
Challenges That You May Face During P2P Payment App Development
Although the design & development of app are not a part of challenges, for building an app like Square Cash, you require a lot of resources and expertise that are expensive to acquire. Well, the challenges may come in the form of the following aspects.
- Security Challenges
- Conversion of Currency
- Regional / Geographic Limitations
- Peoples’ reluctance to change mindsets
How Much Does It Cost To Develop A Peer to Peer Payment App Like Square Cash?
The location of the development and team size also play a role in the cost of development. The cost also depends on the features and third-party APIs that you want to implement in the app. You nearly would pay $25,000 for an app with basic features, whereas app with advanced features the development cost would be around $35,000.